Company Reports

Eni’s strategy to achieve carbon neutrality by 2050 involves aggressive investment in low-carbon businesses, even as its hydrocarbon portfolio continues to grow. The company differentiates itself through a satellite model, establishing independent, self-funding entities to attract third-party capital and unlock value. To date, institutional investors have committed EUR 6.4 billion to these businesses. Eni expects to generate a further EUR 16 billion in cash proceeds from its satellites over 2026-30, building on the EUR 16 billion already cashed in since 2019.

Eni reported adjusted net earnings of EUR 2.3 billion, compared with EUR 1.1 billion the year before, on higher commodity prices and wider refining margins. With strong results and an improved outlook, Eni increased full-year guidance and increased planned shareholder returns.

Eni reported first-quarter adjusted net earnings of EUR 1.3 billion, compared with EUR 1.4 billion the year before. However, with a higher price outlook given recent events, Eni increased full-year cash flow guidance by 20% to EUR 13.8 billion and buyback guidance by 90% to EUR 2.8 billion.

Eni’s strategy to achieve carbon neutrality in 2050 involves aggressive investment in low-carbon businesses, even as growth in its hydrocarbon portfolio continues. The company differentiates itself through a satellite model, establishing independent, self-funding entities to attract third-party capital and unlock value. To date, institutional investors have committed EUR 5.8 billion to these businesses. Eni expects to generate a further EUR 16 billion in cash proceeds from its satellites over 2026-30, building on the EUR 16 billion already cashed in since 2019.

Eni’s fourth-quarter results exceeded expectations, as increased oil production shielded E&P results from lower oil price realizations and currency headwinds. Full-year group cash flow from operations of EUR 12.5 billion surpassed guidance, while total portfolio cash inflows reached EUR 7.2 billion.

In the wake of the capture and arrest of Venezuelan President Nicolás Maduro, Trump administration officials signaled that US companies would be involved in the restoration of Venezuelan crude production.

Eni's third-quarter results exceeded expectations, as increased oil production partially mitigated the adverse impact of lower oil prices on E&P results. For the second consecutive quarter, management raised its guided cash flow from operations, this time along with improved distribution targets.

We've updated our midcycle oil price assumption. Our 10-year forecast marries our bullish in-house oil demand view with Rystad's supply projections, which align with our revised, long-term take.

Eni’s strategy to achieve carbon neutrality in 2050 mirrors peers, as it seeks to invest in low-carbon businesses. Although its legacy hydrocarbon business will remain the primary earnings driver during the next decade, like peers, it is differentiating itself with a satellite model, separating its transition businesses for potential public listing or outside funding. To date, KKR and EIP invested in Enilive and Plenitude, respectively, a total of EUR 4.4 billion, proving the model’s viability. Eni targets EUR 13 billion in proceeds from its satellites between 2019 and 2030 to fund low-carbon initiatives and shareholder distributions.

Eni’s strategy to achieve carbon neutrality in 2050 mirrors peers, as it seeks to invest in low-carbon businesses. Although its legacy hydrocarbon business will remain the primary earnings driver during the next decade, like peers, it is differentiating itself with a satellite model, separating its transition businesses for potential public listing or outside funding. To date, KKR and EIP invested in Enilive and Plenitude, respectively, a total of EUR 4.4 billion, proving the model’s viability. Eni targets EUR 13 billion in proceeds from its satellites between 2019 and 2030 to fund low-carbon initiatives and shareholder distributions.

Eni’s second-quarter results came in ahead of market expectations. Lower oil prices and production weighed on exploration and production's adjusted EBIT, down 33% year over year. The firm adjusted guidance on a more optimistic $70/barrel outlook, while leaving distribution targets unchanged.

Eni’s strategy to achieve carbon neutrality in 2050 mirrors peers, as it seeks to invest in low-carbon businesses. Although its legacy hydrocarbon business will remain the primary earnings driver during the next decade, like peers, it is differentiating itself with a satellite model, separating its transition businesses for potential public listing or outside funding. To date, KKR and EIP invested in Enilive and Plenitude, respectively, a total of EUR 4.4 billion, proving the model’s viability. Eni targets EUR 13 billion in proceeds from its satellites between 2019 and 2030 to fund low-carbon initiatives and shareholder distributions.

Crude oil prices were only up about 1% in early trading on June 23 after the US bombed Iranian nuclear sites over the weekend. Before this rise, oil prices had increased nearly 21% in the last month compared with oil equities, as measured by the Energy Select Sector SPDR Fund's 9% gain.

Eni reported first-quarter results ahead of expectations. Following the decline in oil prices, management revised its 2025 gross capital-expenditure target, from EUR 9 billion to below EUR 8.5 billion, and planned mitigating actions to offset around EUR 2 billion in adverse impacts on its cash flow.

Eni reported fourth-quarter results below expectations. Its strategic update brought an extension of guidance through 2028, an increase in its overall payout policy from 30%-35% to 35%-40% of cash flow from operations, the introduction of a CCUS satellite, and a Southeast Asia upstream combination.

No-moat Eni adjusted net earnings fell to EUR 1.3 billion in the third quarter of 2024 compared with EUR 1.8 billion the previous year, but ahead of market expectations, mainly due to declining refining margins and lower E&P realized prices. Our EUR 15.10 fair value estimate remains unchanged.

Eni’s strategy to achieve carbon neutrality in 2050 mirrors that of many peers as it seeks to invest in new low-carbon businesses. Although, its legacy hydrocarbon business will remain the primary earnings driver during the next decade like peers, it is differentiating itself with a satellite model by separating its business segments for potential public listing or outside investment. Although novel, we have our doubts this structure will be fully appreciated by the market as opposed to outright divestment and return of capital as others are doing.

No-moat Eni reported adjusted net earnings of EUR 1.5 billion in the second quarter of 2024 compared with EUR 2 billion the year before, ahead of expectations thanks to strong production growth and better price realizations. With no changes to our estimates, we maintain our EUR 14.90 per share fair value estimate.

Eni’s strategy to achieve carbon neutrality in 2050 mirrors that of many peers as it seeks to invest in new low-carbon businesses. Although, its legacy hydrocarbon business will remain the primary earnings driver during the next decade like peers, it is differentiating itself with a satellite model by separating its business segments for potential public listing or outside investment. Although novel, we have our doubts this structure will be fully appreciated by the market as opposed to outright divestment and return of capital as others are doing.

Eni reported adjusted net earnings of EUR 1.6 billion in the first quarter of 2024 compared with EUR 2.9 billion the year before, nearly meeting market expectations. The decline was primarily attributable to weaker gas and liquefied natural gas results due to lower prices and weaker trading results. Hydrocarbon production grew 5% from the year before on project ramp-ups and the Neptune Energy acquisition. Our fair value estimate and no-moat rating are unchanged.